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Leisenring Keynote
Leisenring Keynote
Leisenring Keynote
Leisenring Keynote
Leisenring Keynote
Leisenring Keynote
Leisenring Keynote
Leisenring Keynote
Leisenring Keynote
Leisenring Keynote
Leisenring Keynote
Leisenring Keynote
Leisenring Keynote
Leisenring Keynote
Leisenring Keynote
Leisenring Keynote
Leisenring Keynote
Leisenring Keynote
Leisenring Keynote
Leisenring Keynote
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Leisenring Keynote

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  • Ian
  • Ian
  • Ian
  • Transcript

    • 1. INTERNATIONAL ACCOUNTING STANDARDS James Leisenring Member: International Accounting Standards Board Disclaimer: The views expressed in this presentation are those of James Leisenring and not the IASB .
    • 2. INTERNATIONAL ACCOUNTING OBJECTIVE
      • Convergence to a single set of standards
      • Shared by FASB and IASB
      • To meet objective requires
        • Improvements
        • Convergence
      • Annual improvement process
      • Interpretations
    • 3. INTERNATIONAL ACCOUNTING OBJECTIVE
      • Reconciliation to US GAAP
      • SEC Proposals
        • Critical it be IFRS not “adopted” IFRS
        • Misunderstandings of SEC role
      • Principle-based vs. Rules-based
      • Europe 2005
    • 4. INTERNATIONAL FINANCIAL REPORTING STANDARDS
      • IFRS No. 1—First Time Adoption of IFRS
      • IFRS No. 2—Share-based Payment
      • IFRS No. 3—Business Combinations
      • IFRS No. 4—Insurance Contracts
      • IFRS No. 5—Non-current Assets Held for Sale and Discontinued Operations
      • IFRS No. 6—Exploration and Evaluation of Mineral Resources
      • IFRS No. 7—Financial Instruments: Disclosures
      • IFRS No. 8—Operating Segments
    • 5. IASB AGENDA—ACTIVE
      • Common Control Transactions
      • Consolidations
      • Emission Trading Schemes
      • Derecognition
      • Fair Value Measurement Guidance
      • Financial Statement Presentation
      • Government Grants
      • Convergence—Short-term
      • Leases
      • Liabilities
      • Management Commentary
      • Post-employment Benefits
      • Revenue Recognition
      • SME (Private Companies)
      • Conceptual Framework
    • 6. IASB AGENDA
      • IAS 12—Income Taxes
      • IAS 31—Joint Ventures
      • IAS 33—Earnings Per Share
      • IAS 36—Impairment (?)
      Convergence: Near Term—IASB/FASB
    • 7. IASB AGENDA
      • Memorandum of Understanding (Roadmap)
      • Focus on major projects on agenda
      • Don’t try to address every reconciling item
      • Don’t try to converge inadequate standards
      Convergence: Longer Term
    • 8. IASB AGENDA MOU Projects
      • Business Combinations (Complete)
      • Consolidations
      • Fair Value Measurement Guidance
      • Liabilities and Equity Distinctions
      • Financial Statement Presentation
      • Postretirement Benefits
      • Revenue Recognition
      • Derecognition
      • Financial Instruments
      • Intangible Assets (Inactive)
      • Leases
    • 9. CONVERGENCE ROADMAP: LONGER TERM
      • Extractive Industries
      • Financial Instruments
      • Intangible Assets
      Topics on Research Agenda Not Yet Active
    • 10. IASB RESEARCH AGENDA— INITIAL WORK WITH PARTNERS
      • Extractive Industries (Australia, Canada, South Africa, and Norway)
      • MD&A Reporting
      • (Germany, Canada, UK, New Zealand)
      • Joint Ventures (Australia)
      • Intangible Assets (Australia)
      • Measurement (Canada)
    • 11. DISCUSSION PAPERS
      • Preliminary Views on Insurance Contracts
      • Fair Value Measurements
      • Management Commentary
      • Preliminary Views on Amendments to IAS 19 Employee Benefits
      • Reducing Complexity in Reporting Financial Instruments
    • 12. EXPOSURE DRAFTS
      • State Controlled Entities and the Definition of a Related Party (IAS24)
      • Cost of an Investment in a Subsidiary (IFRS-1)
      • IAS 37 Provisions, Contingent Liabilities and Contingent Assets and IAS 19 Employee Benefits
      • Joint Arrangements
      • Group Cash-settled Share-based Payment Transactions
      • Improvements to IFRS
    • 13. Project Phases
      • A: Objectives and qualitative characteristics
      • B: Elements, recognition/derecognition, and measurement attributes
      • C: Measurement concepts
      • D: Reporting entity
      • E: Presentation and disclosure
      • F: Framework purpose and status
      • G: Applicability to not-for-profit sector
      • H: Entire framework
      CONCEPTUAL FRAMEWORK
    • 14. Objective of Financial Reporting
      • Decision usefulness
      • “ Stewardship”
      • “ Provide information that is useful to present and potential investors and creditors and others in making investment, credit, and similar resource allocation decisions”
      • “ The objective of general purpose external financial reporting is to provide financial information about the reporting entity that is useful to present and potential investors and creditors in making decisions in their capacity as capital providers”
      CONCEPTUAL FRAMEWORK
    • 15. Qualitative Characteristics
      • Fundamental QCs
      • Relevance
      • Predictive Value
      • Feedback Value
      • Faithful Representation
      • Completeness
      • Neutrality
      • Freedom from error
      CONCEPTUAL FRAMEWORK
      • Enhancing QCs
      • Verifiability
      • Comparability
      • Timeliness
      • Understandability
      • Pervasive Constraints
      • Materiality
      • Costs versus benefits
    • 16. Source of the Early Debates
      • Assets, liabilities, or “what-you-may-call-its”
      • Proper matching to avoid “distorting” periodic earnings
      • Argument often used to avoid recognition of an item is that the result will “distort” income (earnings) or to recognize something to avoid “distortion”
      CONCEPTUAL FRAMEWORK Elements
    • 17.
      • Basic conclusion as to the conceptual primacy of assets and secondarily liabilities
      • Thought to be a “balance sheet” approach
      • Can there be an “income statement” view?
      Elements IASB and FASB Framework CONCEPTUAL FRAMEWORK
    • 18.
      • Define revenue and expense without regard to assets and liabilities
      • Accept that a balance sheet will contain a debit or credit necessary to achieve the “appropriate” amount of net income
        • Also define or describe what is the “appropriate” amount of net income
      For the income statement view to have any intellectual rigor, proponents must either: CONCEPTUAL FRAMEWORK Elements
    • 19.
      • Can’t define revenues, expenses, gains, and losses without reference to assets or liabilities
      • Absent independent definition of revenues, expenses, gains, and losses (not dependent on assets and liabilities), the income statement view is vacuous
      • Measuring net income by the change in net assets provides an anchor for resolving difficult accounting questions
      CONCEPTUAL FRAMEWORK Elements
    • 20.
      • To resolve accounting debates in a consistent manner
      • To defend accounting standard-setting process as in fact neutral
      • To achieve principles-based standards
      • Alternatives suggested just won’t work:
        • Consensus
        • Compromise
        • Consequences
      CONCEPTUAL FRAMEWORKS Framework is essential:

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